I believe they have made some changes from the 24/10/22 LOM...

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12/02/24

11:42

Post #: 72357454
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Originally posted by jadco55: ↑

Thanks for the effort ecnalf. I am also trying to relate the numbers in the quarterly reports back to the 24/10/22 LOM plan.
It’s a struggle. For comparison purpose, do you take the LOM yr1 start to be the Setp 23 quarter? That’s 1/7/23. So let’s assume that is the case.
My preliminary calculations based on the PFS of 22/9/20 showed that the stripping cost has increased from $3.1/t to >$8.5/t. But that still cannot account for the mine development cost differential of $900k in the yr1 LOM plan vs $14.1m for 6m with more to come for the next 6m. So is the budget completely unrealistic or does the $56.6m opex also
has mine development cost included?
On ore mined yr1 plan is 1071kt and after 6m only 83kt were mined.
on the plus side the historical stockpile and gold price of A$3k have provided a buffer but the stockpile should be close to depletion.
Next quarterly report will hopefully show a dramatic reduction in stripping cost and a big jump in ore mined. We hope!

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I believe they have made some changes from the 24/10/22 LOM plan. The gold price was under A$2500 back then, the stockpile was not economic at that time. When the gold price increased, they have decided to use stockpile to commence the plant. If you exclude the $14.1m development cost, they already had positive operation cashflow from processing the stockpile at AISC around $2450. It has fully funded the staff cost and partially funded some of the development cost of Greenfields.

They also decided to optimise the mine design for Greenfields and that's the 14.1 million development cost is for. The optimised mine will not only reduce the stripping ratio by 36% but also increase the gold production by 8K ounces. I also think the $8.5/t stripping cost is high, but I am not an expert on this. I hope someone in this forum can shed some light on this.

And yes the historical stockpile is close to depletion. The development in Greenfields was largely complete, there are 73.6 tons mined from Greenfields and 47.k was processed in the Dec quarterly. Greenfields has 100% capacity to provide ore feed into the processing plant (for the next 18 months) and it was mentioned in the Dec quarterly. They had 10 days plant shut down due to the power outage, I hope they have built stockpile in the 10 days.

FML Price at posting: 16.0¢ Sentiment: Buy Disclosure: Held
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